CONSUMERISCONSUMERISM M

IN THE 1920sIN THE 1920s

Postwar ProsperityPostwar Prosperity The "Second Industrial The "Second Industrial

Revolution" : WWI stimulated Revolution" : WWI stimulated development and investment in development and investment in new technology that contributed new technology that contributed to the business boom.to the business boom.

As electricity became widespread As electricity became widespread and industrial production more and industrial production more efficient, mass produced efficient, mass produced consumer goods became available consumer goods became available to the public at attainable prices to the public at attainable prices (low). (low).

Consumers were reading many Consumers were reading many materials and purchasing the materials and purchasing the same goods.same goods.

Communication innovations in Communication innovations in radio, advertising, and film radio, advertising, and film contributed to the homogenization contributed to the homogenization of ideas that led to the advent of of ideas that led to the advent of national popular culture.national popular culture.

Postwar ProsperityPostwar Prosperity

The cycle that created the business boom in the 1920's: The cycle that created the business boom in the 1920's: standardized mass production led to standardized mass production led to more efficient machines, which led tomore efficient machines, which led to higher production and wages, which led to higher production and wages, which led to increased demand for consumer goods, increased demand for consumer goods, which perpetuated more standardized mass production. which perpetuated more standardized mass production.

Postwar ProsperityPostwar Prosperity IndustryIndustry *Percentage Increase, 1922-28 *Percentage Increase, 1922-28 Industrial Production: 70%Industrial Production: 70% Gross National Product: 40%Gross National Product: 40% Per Capita Income: 30% Per Capita Income: 30% Output per factory man hour: 75%Output per factory man hour: 75% Corporate Profits: 62% (1923-1929)Corporate Profits: 62% (1923-1929) Electric PowerElectric Power *Percentage Increase, 1899-1929: 331%*Percentage Increase, 1899-1929: 331% Percentage of American Industries powered by Percentage of American Industries powered by

electricity, 1929: 50%electricity, 1929: 50% WorkersWorkers *Percentage Increase, 1923-29*Percentage Increase, 1923-29 Worker's incomes: 11% Worker's incomes: 11% Real Earnings (for employed wage earners) 22%Real Earnings (for employed wage earners) 22% Average Work Week: -4%Average Work Week: -4%

In what general ways did the economy change in the 1920's?

What changes in the average worker's wage, output, and work day length do you notice?

Scientific Management and Scientific Management and the Reorganization of Workthe Reorganization of Work

Industries began to employ Industries began to employ automated machinery and automated machinery and "scientific management" to "scientific management" to increase efficiency. increase efficiency.

The reorganization of work The reorganization of work resulted in more spare time and resulted in more spare time and disposable income for average disposable income for average workers. workers.

It also led to a decline in the It also led to a decline in the importance of skill in favor of importance of skill in favor of discipline and subordination. discipline and subordination.

Businesses financed industrial Businesses financed industrial research and time studies on a research and time studies on a grand scale.grand scale.

The Principles of Scientific The Principles of Scientific ManagementManagement (1911) by (1911) by engineer Frederick W. Taylor engineer Frederick W. Taylor was widely published and was widely published and applied - scientific management applied - scientific management is also known as "Taylorism." is also known as "Taylorism."

Industries took a more organized and scientific

approach under Taylorism.

Scientific Management and Scientific Management and the Reorganization of Workthe Reorganization of Work

Innovative industrialist Henry Ford masterfully applied Taylor's theory of Innovative industrialist Henry Ford masterfully applied Taylor's theory of worker efficiency and wage motive. worker efficiency and wage motive.

Ford began paying an unprecedented $5 a day- it was more than a pay Ford began paying an unprecedented $5 a day- it was more than a pay increase, it was a means for Ford to establish a measure of control over increase, it was a means for Ford to establish a measure of control over the workforcethe workforce

The price of Model-T was cut in half, thereby expanding the customer The price of Model-T was cut in half, thereby expanding the customer base. base.

This image of a moving assembly line at Ford Motor Company This image of a moving assembly line at Ford Motor Company demonstrates both the principles of efficient production and the demonstrates both the principles of efficient production and the proliferation of mass produced consumer goods. proliferation of mass produced consumer goods.

Scientific Management and Scientific Management and the Reorganization of Workthe Reorganization of Work

This article announces the clamor in Michigan after Ford began paying $5 a day.

Scientific Management and Scientific Management and the Reorganization of Workthe Reorganization of Work

A furniture factory in 1903

A furniture factory in 1925

The Automobile and American The Automobile and American CultureCulture

The explosive growth of the The explosive growth of the automobile industry automobile industry revolutionized American life. revolutionized American life.

Henry Ford's innovative Henry Ford's innovative production techniques made production techniques made cars affordable for average cars affordable for average Americans and set new Americans and set new standards for industry. standards for industry.

By the end of the decade, By the end of the decade, there were enough cars on the there were enough cars on the road for every one in five road for every one in five persons. persons.

Related industries sprang up Related industries sprang up including service facilities, including service facilities, filling stations, and motels. filling stations, and motels.

General Motors Eclipses General Motors Eclipses FordFord

Although Ford developed a Although Ford developed a system for mass-producing system for mass-producing cars and selling them cars and selling them cheaply, Ford Motor cheaply, Ford Motor Company failed to produce Company failed to produce options for consumers. options for consumers.

The utilitarian Model T was The utilitarian Model T was "available in any color, so "available in any color, so long as it was black" and long as it was black" and changed little in design over changed little in design over the years. the years.

When Alfred P. Sloan When Alfred P. Sloan became president General became president General Motors Corporation in 1923, Motors Corporation in 1923, he introduced alternative he introduced alternative makes like Chevrolet and makes like Chevrolet and Buick that came in a variety Buick that came in a variety of colors for increasingly of colors for increasingly sophisticated consumers. sophisticated consumers.

The Model T

General Motors Eclipses General Motors Eclipses FordFord

GM tapped into the emerging consumer psychology, annually GM tapped into the emerging consumer psychology, annually producing stylist updated models, marketing them aggressively, producing stylist updated models, marketing them aggressively, and promoting installment payment plans. and promoting installment payment plans.

Finally, in 1927, Ford Motor Company took a cue from GM's Finally, in 1927, Ford Motor Company took a cue from GM's success and introduced the Model A with a blitz of advertising success and introduced the Model A with a blitz of advertising and the offer of and the offer of installment plans. installment plans. The product was so highly The product was so highly anticipated that many were sold before it was even introduced. anticipated that many were sold before it was even introduced.

GM’s 1927 Cadillac La Salle- the first car

designed by a stylist.

Ford’s Model A

Warren Harding and the Warren Harding and the “Return to Normalcy”“Return to Normalcy”

Similar to modern Republicans Similar to modern Republicans in that they cut taxes to free up in that they cut taxes to free up capital for investment and cut capital for investment and cut federal spending. federal spending.

President Warren Harding's President Warren Harding's campaign slogan, "Return to campaign slogan, "Return to Normalcy," and his presidency Normalcy," and his presidency itself were mediocre and itself were mediocre and uneventful, save for the uneventful, save for the scandals that came to light scandals that came to light after his death in office. after his death in office.

He took a laissez-faire stance He took a laissez-faire stance in economics and government, in economics and government, so accordingly, he opposed so accordingly, he opposed organized labor and anti-trust organized labor and anti-trust

measuresmeasures..

Warren Harding and the Warren Harding and the “Return to Normalcy”“Return to Normalcy”

Though he was an steadfast Though he was an steadfast conservative, Harding took conservative, Harding took little initiative as a little initiative as a policymaker and delegated policymaker and delegated decision-making to a few key decision-making to a few key cabinet members. cabinet members.

Secretary of the Treasury Secretary of the Treasury Andrew Mellon pushed Andrew Mellon pushed through tax cuts to wealthy through tax cuts to wealthy citizens and business, citizens and business, following the "trickle down" following the "trickle down" theory of economics.theory of economics.

Secretary of Commerce Secretary of Commerce Herbert Hoover and Herbert Hoover and Secretary of State Charles Secretary of State Charles Evans Hughes worked to Evans Hughes worked to secure foreign markets for secure foreign markets for American interests. American interests.

The influential Andrew Mellon on a postage stamp.

Inaugural Address of Inaugural Address of Warren Harding (1921)Warren Harding (1921)

““The forward course of the business cycle The forward course of the business cycle is unmistakable. …is unmistakable. …

I speak for administrative efficiency, for I speak for administrative efficiency, for lightened tax burdens, for sound lightened tax burdens, for sound commercial practices, for adequate credit commercial practices, for adequate credit facilities, … for the omission of facilities, … for the omission of unnecessary interference of Government unnecessary interference of Government with business, for an end to Government's with business, for an end to Government's experiment in business, and for more experiment in business, and for more efficient business in Government efficient business in Government administration. …”administration. …”

Protective Tariffs Protective Tariffs A A protective tariffprotective tariff is a tax on is a tax on

imported goods to make the imported goods to make the them less competitive with them less competitive with American-made goods. American-made goods.

The Emergency Tariff Act of The Emergency Tariff Act of 1921 and the Fordney 1921 and the Fordney McCumber Act of 1922 imposed McCumber Act of 1922 imposed the highest tariff rates in the highest tariff rates in history at the time. history at the time.

Lawmakers wanted to protect Lawmakers wanted to protect American interests as Europe American interests as Europe began to recover and export its began to recover and export its goods. goods.

The tariffs made it difficult for The tariffs made it difficult for Europe to pay war debts and Europe to pay war debts and eventually slowed international eventually slowed international trade by provoking other trade by provoking other countries to enact high tariffs countries to enact high tariffs on U.S. exports.on U.S. exports.

Silent Cal and the Business Silent Cal and the Business of Americaof America

When President Harding died in When President Harding died in office in August 1923, the office in August 1923, the famously laconic Calvin famously laconic Calvin Coolidge assumed the Coolidge assumed the presidency. presidency.

Coolidge's laissez-faire policy - Coolidge's laissez-faire policy - cutting taxes, reducing cutting taxes, reducing government spending, and government spending, and imposing high tariffs on foreign imposing high tariffs on foreign goods. goods.

He and Mellon were intensely He and Mellon were intensely focused on managing the focused on managing the government and its budget in government and its budget in an organized, business-like an organized, business-like manner. manner.

Coolidge's famous remark, "The Coolidge's famous remark, "The business of America is business of America is business," characterized the business," characterized the pro-business, pro-consumerism pro-business, pro-consumerism mentality of the Jazz Age.mentality of the Jazz Age.

Coolidge, Mellon, and Hoover

Inaugural Address of Calvin Inaugural Address of Calvin Coolidge (1925)Coolidge (1925)

“… “… unless we wish to hamper the people in unless we wish to hamper the people in their right to earn a living, we must have tax their right to earn a living, we must have tax reform. The method of raising revenue ought reform. The method of raising revenue ought not to impede the transaction of business; it not to impede the transaction of business; it ought to encourage it. I am opposed to ought to encourage it. I am opposed to extremely high rates, because they produce extremely high rates, because they produce little or no revenue, because they are bad for little or no revenue, because they are bad for the country, and, finally, because they are the country, and, finally, because they are wrong. … This country believes in prosperity. wrong. … This country believes in prosperity. It is absurd to suppose that it is envious of It is absurd to suppose that it is envious of those who are already prosperous.” those who are already prosperous.”

What does it mean to be What does it mean to be American?American?

Advertising in the 20sAdvertising in the 20s Advertising techniques Advertising techniques

refined as the mutually refined as the mutually supportive phenomena of supportive phenomena of mass production and mass mass production and mass media exploded into the media exploded into the American consciousness. American consciousness.

Modern advertising, using Modern advertising, using popular culture and popular culture and celebrities to fuel celebrities to fuel consumption, began to take consumption, began to take shape.shape.

The array of new appliances The array of new appliances and consumer goods and consumer goods available at a lower cost due available at a lower cost due fueled consumption.fueled consumption.

Businesses conquered the Businesses conquered the challenge of efficiently challenge of efficiently producing enough goods; now producing enough goods; now the focus was creating desire.the focus was creating desire.

This ad uses a celebrity endorsement to glamorize

smoking and exploits the image of the “new woman” of the 1920’s.

Advertising in the 20sAdvertising in the 20s

Another ad legitimizing desire; it associates the product with glamour and modernity

Advertising in the 20sAdvertising in the 20s

See this ad, buy the radio, hear more ads, buy more stuff!

““Kiss Me with your Kiss Me with your Barbasol Face”Barbasol Face”

Forever YoungForever Young

Americans and their Americans and their waists…waists…

Mobile Advertising…Mobile Advertising…

President Coolidge on President Coolidge on Advertising (1926)Advertising (1926)

““It makes new thoughts, new desires, and new It makes new thoughts, new desires, and new actions. ... It is the most potent influence in actions. ... It is the most potent influence in adopting and changing the habits and modes adopting and changing the habits and modes of life, affecting what we eat, what we wear, of life, affecting what we eat, what we wear, and the work and play of the whole Nation. …”and the work and play of the whole Nation. …”

““Mass production is only possible where there Mass production is only possible where there is mass demand. Mass demand has been is mass demand. Mass demand has been created almost entirely through the created almost entirely through the development of advertising. …”development of advertising. …”

““Advertising ministers to the spiritual side of Advertising ministers to the spiritual side of trade. … It is all part of the greater work of trade. … It is all part of the greater work of regeneration and redemption of mankind.”regeneration and redemption of mankind.”

And the Best part And the Best part is, it won’t cost is, it won’t cost you anything…you anything…

Buy Now Pay Later!Buy Now Pay Later!

Credit and the Consumer Credit and the Consumer

As consumerism became As consumerism became a hallmark of a hallmark of Modernism, the stigma Modernism, the stigma of purchasing goods on of purchasing goods on "installment plans" "installment plans" faded. faded.

The automobile industry The automobile industry was one of the first to was one of the first to capitalize on the capitalize on the potential of consumer potential of consumer credit, but other credit, but other industries quickly industries quickly followed suit. followed suit. This ad characterizes credit

as a prudent financial decision and a way to gain

instant gratification.